india rice exports: Indian rice shipments of 5,00,000 tons postponed after new obligation: Exporters

The delay in shipments from the world’s largest exporter of rice may deplete inventories in importers akin to Benin, Ghana, Cote d’Ivoire, and Liberia, and enhance native costs in these international locations, that are already close to multi-year highs.

India, which is scrambling to rein-in inflation forward of state elections later this 12 months, on Friday expanded curbs on rice exports with a 20% obligation on parboiled rice that will be efficient till Oct. 15.

“Patrons are suspending the shipments; no one is prepared to pay the obligation,” mentioned Himanshu Agarwal, govt director at Satyam Balajee, an exporter.

Shipments of round 500,000 tons have been placed on maintain, mentioned B.V. Krishna Rao, president of the Rice Exporters Affiliation (REA).

Indian exporters have been providing 5% damaged parboiled selection final week at $450-$455 per metric ton, however since then have raised costs to a document $520 to $540, exporters mentioned, up practically 40% from a 12 months in the past. “Even earlier than India imposed the obligation, consumers have been uncomfortable with the rising costs. Patrons from African international locations cannot afford to purchase on the present value stage,” mentioned Rao. Provides will enhance as soon as harvesting of the summer-sown crop begins from October, which can deliver down native paddy costs and ultimately export costs of rice, Rao mentioned.

India exported a document 22.2 million tons of rice in 2022, together with 7.4 million tons of parboiled rice.

Importing international locations have few choices since different large producers Thailand, Vietnam and Pakistan have raised costs in current weeks, mentioned a New Delhi-based vendor with a world commerce home.

“African consumers suppose the perfect wager is to delay shipments and watch for the worth correction,” he mentioned.

Decrease-income customers in Asia and Africa beforehand most well-liked 100% damaged rice, exporters mentioned, which was obtainable at $325 per ton, however India banned exports of damaged rice final 12 months.

India, which accounts for 40% of world rice exports, in July ordered a halt to its largest rice export class, non-basmati white rice, which fuelled a rally in international rice costs.